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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Situation: When I started with my company my salary was

Resolved Question:

Situation: When I started with my company my salary was £80K. I was given shares in the company equating to 10%. I paid £10 for these shares via a bank transfer. The way in which I receive my salary monthly, is split into a small portion through PAYE and
the majority by a DIVIDEND payment. As the company was not doing well I agreed to a 10k pay cut down to £70k some 18 months ago. This 10% difference in salary has been accrued so that when the company was on a more even keel,it would be paId to me. So I have
been on 70k for the last 18 months. My pay at the moment is £654 (PAYE) and £5179.33 (DIVIDEND) per month. The company has now run out of money but currently has an overdraft of £100k. I was asked by the founder (80% shareholder) to either inject cash into
the business (£50k) or work without pay. I am not willing to do either and wish to leave with the most amount possible. My questions are: 1. If I were to be made redundant, is it correct I would only receive a redundancy package based on my PAYE of £650? 2.If
I resign is it possible to take my notice period salary still as the above PAYE/DIVIDEND split or would I have to revert back to taking it all in PAYE? 3.What is the position as we regards ***** ***** back payments from when my salary was reduced from £80
to £70K? 4.Do I have to surrender my shares, and if not, can the majority shareholder buy them off me? Thanks for your help
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
I understand this is more than one simple question and am prepared to pay more for your answer if you can please help me.
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you
Do you have any form of shareholders agreement please?
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 1 year ago.
Do you have a number we can chat on? What would be the best time to call?
Customer: replied 1 year ago.

Hi I can chat now. My number is ***** 824030

Expert:  Ash replied 1 year ago.
Calling!
Alex
Customer: replied 1 year ago.

Hi Alex. Thanks for earlier.



If I gave up my shares and had all my salary paid PAYE for 1month, could I then resign at the end of that month, hand in my notice and be eligible to have my notice period paid out on a PAYE basis? If not, how long would I have to wait?

Expert:  Ash replied 1 year ago.
It really depends what is in your contract. As you dont have one, this presents some difficulty.
Alex
Customer: replied 1 year ago.

My contract of employment us based on PAYE but I have no shareholders agreement or documentation in writing, only a share certificate.

So my question is, if I were to forfeit my shares and go back to PAYE, how long would I have to work under this arrangement before I can resign and be paid out on the full PAYE basis?

Expert:  Ash replied 1 year ago.
It would be based on your last few months, but if you resign then you are only entitled to notice pay.
Alex
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